The
defendant was entitled to delivery up of a car on which it had been given a
bill of sale as security for a loan to the claimants.Although the claimants had no personal liability because
each of them had been made bankrupt and been discharged from bankruptcy, the
Insolvency Act 1986 preserved the defendant’s right to enforce its
security.That right had not been
lost by the defendant proving in the first claimant’s bankruptcy for the full
sum owed under the loan agreement because the defendant had disclosed its
security in its proof even though it had not attributed any value to it.The loan had been regulated by the
Consumer Credit Act 1974 but it was doubtful that service of a default notice
under s 87 was appropriate once the claimants had ceased to have any personal
liability.Until the term of the
loan expired, service of a termination notice under s 76 and/or enforcement
notice under s 98 would have been necessary.But once the term had expired no such notice was necessary to
entitle the defendant to delivery up.

On the facts found at trial, a credit card agreement was unenforceable because the terms and conditions had not accompanied the application which the debtor signed and no fresh agreement had been supplied when the agreement had been modified to upgrade the card. A default notice had also been defective because it had wrongly stated the sum due and had not included an OFT fact sheet.